Is the S&P 500 really a diversified index anymore?

In this episode of Stocks In Translation, Yahoo Finance markets and data editor Jared Blikre examines market concentration — when only a few stocks in an index or investor portfolio account for most of the gains.

Joined by Yahoo Finance's Sydnee Fried and The Lead-Lag Reports publisher Michael Gayed, the group dives into the debate over the narrow bull market. “It’s debatable as to whether the S&P 500 is really a diversified index anymore,” adds Gayed. “When you’ve got a select number of stocks that are diving the entire momentum play across the board.” Gayed provides a path to diversification for passive, index-only investors and explores Consumer Price Index metrics and how stock market and real estate inflation can affect the trading algorithms that move the market on a day-to-day basis.

Bilkre and crew also discuss zombie companies, the Pareto Principle, and Japan’s influence on last week’s volatility. “The carry trade has been going on for years. You don’t resolve that in 48 hours,” adds Gayed.

Find this episode's transcripts and more episodes of Stocks in Translation at https://finance.yahoo.com/videos/series/stocks-in-translation

Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com.

Yahoo Finance's Stocks In Translation is hosted by Jared Blikre, and produced by John Tejada and Alexander Frangeskides.

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